Question on: JAMB Economics - 2018
Given that Y = C + 1, where C = 50 + 0.75 and 1 = N45m, what is the equilibrium level of income?
A
N20m
B
N380m
C
N200m
D
N180m
Ask EduPadi AI for a detailed answer
Correct Option: B
Here's how to solve for the equilibrium level of income:
1. **Substitute the value of C into the equation for Y:**
Y = (50 + 0.75Y) + 45
2. **Simplify the equation:**
Y = 95 + 0.75Y
3. **Rearrange the equation to isolate Y terms:**
Y - 0.75Y = 95
4. **Combine like terms:**
0. 25Y = 95
5. **Solve for Y (equilibrium income):**
Y = 95 / 0.25
Y = 380
Therefore, the equilibrium level of income is N380m
Add your answer
Please share this, thanks!
No responses